Tamil Nadu Transfer of Development Rights Rules, 2019 (2019)

What the rules govern

The Tamil Nadu Transfer of Development Rights Rules, 2019 create a system for granting development rights when qualifying land is surrendered for public purposes. A Development Right Certificate records the floor space index credit, the place where it was generated and the relevant guideline value.

Development rights may arise when land is surrendered for:

• New roads or widening existing roads proposed in approved development plans.
• Roads notified by a Government department, local authority or Government agency.
• Traffic and transport infrastructure, including bus facilities, metro rail, mass rapid transit, public parking and intermodal infrastructure.
• Urban infrastructure, including water supply, sewerage, drainage, electricity, education and health facilities.
• Conservation of heritage sites, buildings, precincts or natural feature areas.
• Other purposes notified by the Government.

Who may be affected

The Tamil Nadu Transfer of Development Rights Rules, 2019 mainly affect owners surrendering land, holders of Development Right Certificates, developers seeking additional floor space index credit and buyers assessing the development potential of a property.

Transfer of development rights is not permitted for compulsory reservations required for public, recreational, economically weaker section or social housing purposes under specified developments. It is also unavailable where possession is taken under an award, mutual agreement or contract.

Entitlement and certification

The Housing and Urban Development Department rules provide entitlement based on the value of the surrendered land and its guideline value. Land surrendered for road formation, road widening or a public infrastructure project receives an entitlement calculated at 2.25 times the guideline value of the surrendered land. Each identified slum household rehabilitated by the Tamil Nadu Slum Clearance Board receives 30 square metres of floor space index entitlement.

Key procedural requirements include:

• The application must be made to the planning authority in Form I with relevant documents.
• The applicant's signature or thumb impression must be authenticated by a notary.
• The planning authority must verify ownership and title.
• The land must be surrendered through a registered deed, and the patta transferred to the planning authority.
• The certificate is issued in Form II on Rs.100 non-judicial stamp paper.

Using development rights

The Tamil Nadu Transfer of Development Rights Rules, 2019 allow development rights to be used on one or more sites, subject to the development regulations applying to the receiving site. Utilisation is generally allowed only in multiples of 10 square metres, except for the final remainder.

The floor space index at the receiving site cannot exceed the normally permissible limit. Development rights may also be adjusted against regularisation charges, premium floor space index charges or floor space index charges.